Our committee has reviewed the Chancellor's statement and pulled together a plain-English summary of the changes most likely to affect East Grinstead businesses — from national insurance to business rates relief.
The headlines that matter
As ever with a budget, there is a great deal to take in and much of it will not affect smaller firms directly. We have focused here on the measures that will touch the businesses we speak to week in, week out — the retailers on the High Street, the service firms on the industrial estates, and the sole traders working from home offices across the town.
The broad picture is one of modest relief for the smallest businesses, alongside some additional cost pressure for employers. None of it is dramatic, but taken together it is worth understanding before you plan for the year ahead.
National insurance for employers
The employer rate of national insurance has been held steady, which is welcome after the changes earlier in the year. The threshold at which employers start paying has been nudged upward, meaning very small payrolls will see a small saving. For firms with a handful of staff the difference is modest, but it is a saving nonetheless.
- Employer NI rate held at its current level — no further rise
- The secondary threshold rises, reducing cost on the lowest salaries
- No change to the Employment Allowance, which still offsets the first few thousand pounds
What to do about it
If you run payroll yourself, your software will handle the new figures automatically. If you use an accountant or bookkeeper, it is worth a quick conversation to confirm your forecasts for the new tax year reflect the updated threshold.
“The budget is rarely as dramatic in the detail as the headlines suggest. For most local firms, the sensible response is to read the small print, adjust the forecast, and get on with running the business.”
Business rates relief
The existing retail, hospitality and leisure relief has been extended for a further year, though at a slightly reduced rate. For eligible High Street businesses this remains a meaningful saving on the rates bill and is worth claiming if you have not already done so.
Not sure if you qualify for rates relief?
Several EGBA members specialise in business rates and are happy to talk fellow members through whether a claim is worthwhile.
Find a rates adviserWhat happens next
Most of the changes take effect from the start of the new tax year, giving businesses a sensible window to adjust. We will publish a follow-up note once the detailed legislation is published, and our next focus group will look at how local firms are responding.
If you have a question about how a specific measure affects your business, do get in touch. We cannot give financial advice, but we can usually point you towards a member who can.
